The Fair and Accurate Transactions Act

The Fair and Accurate Transactions Act Summary​

The Fair and Accurate Credit Transactions Act (FACTA) is a federal law that primarily aims to protect consumers from identity theft by amending the Fair Credit Reporting Act (FCRA); it allows consumers to access a free credit report once a year from each major credit bureau, enables them to place fraud alerts on their credit reports, and requires businesses to implement "red flag" rules to identify potential identity theft activity. 

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Key points about FACTA:

• Main focus: Preventing identity theft 

• Consumer benefits: Access to a free credit report annually from each credit bureau 

• Business requirements: Implementing procedures to detect and respond to potential identity theft "red flags" 

• Fraud alert option: Consumers can place a fraud alert on their credit report to notify creditors of potential identity theft